In its latest letter to shareholders, Netflix has announced that it’s increasing pricing for new members beginning later this quarter. According to the company, they’re only planning increases in the range of one or two dollars depending on the country. The company claims that the price change will allow them to source more content and “deliver an even better streaming experience.” Existing members won’t be affected by the adjustment in pricing and will stay that way for a “generous time period” according to Netflix.
This isn’t the first price increase Netflix has done this year. Back in January, the company increased prices for new members in Ireland by 1 pound and grandfathered all existing members at the original price for two years. According to the company, they saw “limited impact” from their subscriber numbers when the price adjustment happened and they’re expecting the same result when they apply this upcoming price increase.
“Over the last couple of years, we’ve been improving the content selection on Netflix and broadening it; most recently with the addition of the [sic] amazing shows like House of Cards and Orange is the New Black and if we want to continue to expand to do more great original content, more series, more movies, we have to eventually increase prices a little bit,” said Reed Hastings, Netflix CEO & Co-Founder, during the company’s Earnings Call “And with that we’ll be able to license much more content and deliver it in very high quality video.”
In the letter, Netflix also detailed their current and summer line-up of content which include the second season of Derek, the second season of Orange is the New Black, the second season of Hemlock Grove, the animated comedy series BoJack Horseman, and the final six episodes of The Killing.
Netflix currently has over 48 million global subscribers and the company is hoping to reach almost 50 million by the end of this quarter. Around 35.7 million of those members are from the U.S. and around 12.7 million of those members are part of the company’s international segment. Internationally, Netflix is available in Canada, Mexico, South America, the UK, Ireland, the Netherlands, and the Nordic territories. Netflix is also eager to close the gap between their 50 million subscriber base and HBO’s 130 million.
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